Shanghai, China – China’s top electric automaker BYD will build a car factory in Hungary, the company said on Friday, as it eyes expansion in the European market.
“BYD is set to build its first passenger car factory in Szeged, Hungary, marking a significant step toward green mobility in Europe,” BYD Europe said on X, formerly Twitter.
BYD already has operations in Hungary, including an electric bus factory.
With the new car factory, the company “hopes to accelerate the entry of new energy passenger vehicles into the European market, further deepen (the firm’s) global layout, and actively promote the green transformation of the global energy structure”, it said on Chinese social media.
Originally specializing in battery production, BYD moved into the automotive sector in 2003 and has since become a heavyweight in electric vehicle (EV) production.
Earlier this year, it became the first global manufacturer to pass the five million milestone in EV production, crowning itself “the world’s leading manufacturer of new energy vehicles and power batteries”.
Many foreign automotive leaders — including Tesla, BMW, Mercedes and Audi — depend on BYD for their batteries.
China’s EV sector has benefited from decades of subsidies issued by Beijing in related technological fields.
The growing success of Chinese electric car firms in foreign markets has also drawn scrutiny. The European Union has announced an investigation into the country’s issuance of related subsidies, citing unfair competition.
BYD ceased production of gasoline-powered cars last year, and is now focusing exclusively on hybrid and electric models.
The firm still faces stiff competition from several local brands, including XPeng, Nio and Geely.
